Incentive Premiums by ETTSI

All in all, when compared to offering a discount or a rebate, Sales Incentives produce more sales with happier customers and leave more money on the table. Hence, they cost you nothing.

Sometimes marketing managers shy away from using incentives because they think they can’t afford to incorporate them into their budget. They think they have to offer something irresistible, and therefore expensive, so they don’t even try. Others who do use incentives think that they have to exaggerate the value of the incentive to get the desired result. My experience is that neither is necessary or true.

I can understand that it sometimes seems that if you don’t drop your prices you will lose the business but it is best to make sure that there actually are similar products out there that are priced below yours and that you can afford to sell at that price before you give in.